The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-05-19
Observation-Disclosures
An Unfavorable Report Submitted ON
The Cooperative Pipeline Scheme!
However, the Matter Is Further Discusset
and Various Views Are Expressed-The
Council Is Asked to Bore Eight Wells.

oHu tdTIUuS VIEWS ATb EApItSseu-Iue
Council Is Asked to Bore Eight Wells.
The committee of sixteen that had in charge
the resolutions looking to a cooperative natural
gas pipe line or TO be controlled by the city.
at its meeting Monday night practically shifted
the responsibility on the legal gentlemen con-
nected with it. It was then distinctly stated
that the law was in the way of any enterprise of
the kind. but it was thought by others some plan
might be devised by which peoples scheme for
securing nominally free gas could be inaugu-
rated. Yesterday afternoon the committee, or
rather six Of the members met at the Mayors
Office to learn what the report from the lawyers
would be- If the idea needed any further
arguments to prove its futility, the report
supplied them; but what to do with 1t the COM
mittee did not know Some favored it's submis-
sion to the meeting last night without comment,
while others urged the adoption of a resolution
to accompany it. expressing it as the sense Of
the committee that any cooperative plan at this
time was impracticabe. When form to con-
vey this idea presented an objection would
be made to it. and after two hours session the
committee agreed to go to the mass-meeting with
no view except what the bare report of the SUBJ
committee would convey Much of the talk.
however, referred to the question whether. un-
der the act passed by the last Legislature re-
garding the incorporation of natural-gas and oil
companies, any company could be organized
with more than $780, 900 capital. If it did, then
Indianapolis might wait for gas until the Leg
slature had amended the law, as il
admitted no pipe line could be
laid for 100000. The lawyers differed material
ly on this point Those saying that such COM
panies could have more than 100000 capital
placed their argument she fact that there
were sections in the Revised Statutes which
would make such corporations legal. These sec
tions 1851, relating to interpretations of all
kinds, and Paragraph % of the city charter.
No was certain on this point although other
gentlemen, outside of the committee, of as wide
legal experience They say they have exam
ined the question, and, further, that the SUI
preme Court has, by certain decisions. placed
the incorporation of natural-gas companies un-
der the provisions of the Section. 1851. It was
in this shape that the committee left the matter
and agreed to let the mass-meeting itself do
what it pleased with the subcommittee report.
Since Saturday evening the cooperative idea
ordinary interest. When the meeting at Tom
lnson Hall was called to order, last night S:I5
o'clock. there were about seventy five persons
who, the evening before, had taken a decided
position against cooperative free gas supply;
others were gentlemen who had been acting
with the committee of sixteen, while the ma
iority represented nothing but desire to have
their chimerical ideas adopted. in spite Of law
and ridicule.
tee Of sixteen had done, intimated rather forci-
bly, that it did not any way to the formation
of such scheme, but ne would let the report
tell the meeting just how matters stood Sec
starry McKain read it. It's first two paragraphs
tated that the city could not supply a natural
gas plant, as the municipal Indebtedness had
gone beyond the sum where the city could
tract any further debts according to law, and
that no corporation could be perfected by having
its management confided to fifteen commission
ers, to be appointed by the Superior Court
judges. This was contrary to the law that
limited the right of selecting their own directors
to the stockholders exclusively.
In dealing with the other questions the reDor
as follows:
Can a corporation be organized under the
laws of the State to supply natural gas to the
citizens and manufacturers of the city with
capital of more than 800, 900!
Upon this question your special committee
is divided. it being the opinion of Messrs. Allen
capital of more than 800 O00 be organized
under the general corporate laws of the State.
It is however, the opinion of Mr.. Holman,
Judge Claypool being absent, that corpora
natural gas cannot be formed under
the provisions of the manufacturing
and mining act, and that the only law under
which incorporation for such purpose can be eff
fected is the voluntary association statute
amended at the last session Of the Legislature.
aad by which amendment 800. 900 is made the
limit os Investment therein. Your committee
is of the opinion that the stock of legally in
corporated company could be made practically
non-transferable by provision in the articles OF
association requiring it to be held in trust and
permanently voted by trustees to be named
Can an incorporated board of trustees be
created for the purpose of furnishing natural
gas to the city of Indianapols2
1T is the opinion of your committee that arti-
cles of agreement can be executed on the part of
10 aud Aoc ftr,cp
trustees, and defining their powers and duties,
and for the purpose of carrying into execution
such trust tho citizens may subscribe and con-
tribute such amounts as they may desire And
in case vacancies occur in said board of trustees
by death, resignation or otherwise, the power to
fill such vacancies may be vested in the Superior
Court. or in the remaining trustees themselves
The City Council would have the right and
power to grant a franchise to said board of trus-
tees"
After the reading there was painful silence
of several minutes until William Patter-
son, lawyer and Greenback politician, stepped
boldly to the rescue of the meeting and said:
Il have been a lawyer for thirty-two years. and
would not give q hill of beans for lawyers
opinions. What one may say another will or
pose and have known the same Supreme Court
judges within two years give at one time favor
able and at another adverse opinion on the
same question of law He knew the people
could do this thing, and he brought out an
plant and gas supply could be met at a charge OF
$40 each for certain families and So for others
Taking in the manufactures. $500, 600 would be
the revenue But, by implication, he admitted
the failure of the cooperative plan by introduce
ing resolutiec in directing the Council how to
prepare it's ord,;,ance. The resolution was that,
in addition to other necessary checks and guards
that may be included in any ordinance of our
City Council permitting any company or
corporation to lay natural-g gas mains in
our streets and alleys. the following
provisions, in substance. should be included:
The city should reserve the right at any time to
purchase the plant. on fair and reasonable valu-
alton. TO be determined by the necessary amount
that would be required to replace the same with
a new plant of the kind after deducting a
reasonable amount for the deterioration Of its
plant by use. decay and wear, or if the
city so elects, she should reserve the
right any time to take charge
of the mains and plant and regulate further the
price of gas to consumers. by securing or pay
ing the company 6 per cent interest on the
actual value of the plant, to be determined the
Same way in case of purchase; and provided
hat tho for